Usually when the IMF “paints a pretty picture” of any economy, you and I should be very very skeptical. But here‘s the CNN special nonetheless. It’s good food for thought.
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“The greatest enemy of knowledge is not ignorance; it is the illusion of knowledge.”
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Well, where Fareed gets it wrong is that the reforms were proposed by Ahmadinejad in his first term. But because people were affraid of cutting subsidies, it sat in the Majlis for almost 4 years. It had nothing to do with the sanctions.
Part of the economic plan is to allow Iran’s exchange rate to float, thus it is more expensive to buy Dollars. Unfortunately, the “opposition” has pointed this out to be a sign of Iran’s weakening economy. But the reality is that it is being done purposefully to make imports more expensive while Iranian good will become cheaper to export. It also allows the Iranian government to save the money it was spending to keep the Rial strong.